1.The price of ribs falls to 5$. Draw the income and substitution effects of this price change graphically. Assume ribs are on the horizontal axis.

2.Justify why the government puts the price ceiling on the cost of a pizza. Consumers will loose from this policy

3.Explain and show how all goods, normal or inferior, satisfy the law of demand

4.Nadia likes pork Ribs (R) and Chicken wings (C). Her utility function is (, ) = 102. Her weekly income is $90 which she spends exclusively on R and C. The price for a slab of ribs is $10 and $5 for a piece chicken. (Answer parts a to f). a. State in words and in math Nadia's consumer problem

5. Paul likes two scoop of vanilla ice cream for every chocolate scoop. He gets no extra utility for an additional chocolate scoop if He doesn't have two additional vanilla scoops and no extra utility for extra vanilla scoops without the appropriate amount of chocolate. His utility function can be represented by:

6.If markets for some addictive drugs are found to have a higher price-elasticity of demand than was often thought, and if many addicts have difficulty holding down steady, well-paying jobs, we might speculate that the most likely reason for the surprising elasticity estimates

7.Diminishing marginal rate of substitution necessarily implies that the marginal rate of substitution

8.What event shifts thee supply curve to the left explain

9. If the demand for widgets is inelastic, then when the price of widgets increases. Discuss what happens to the revenues

10.Discuss the axiom preference theory